The Ministry of Unification reportedly plans to expand and modify the South-North Cooperation Fund into a reserve "Unification Fund." The revelation follows President Lee Myung-bak's plan for a "unification tax" mooted in a speech marking Liberation Day on Sunday.

The fund is currently worth about W1 trillion (US$1=W1,187), and the amount spent each year is reimbursed afterwards, so the fund never grows. But the ministry feels if it is turned into a reserve fund by setting aside a certain amount to add to it every year, it can grow in value.

A government source said on Sunday, "The government plans to draft a new bill to turn the South-North Cooperation Fund into a reserve fund and put the bill forward in the plenary session of the National Assembly in October." He added the unification tax is likely to become the main source of the Unification Fund. "It is important as we need to prepare the huge cost of reunification."

The Ministry of Unification reportedly plans to expand and modify the South-North Cooperation Fund into a reserve Unification Fund The revelation follows President Lee Myung-bak's plan for a unification tax mooted in a speech marking Liberation Day on Sunday